Definition - What does Supplementary Coverage mean?
Supplementary coverage is additional coverage that a policyholder can purchase in addition to a primary insurance plan. It covers other expenses, such as lost wages or medical expenses, that the regular plan does not.
Insuranceopedia explains Supplementary Coverage
Regular insurance policies do not cover certain services and out-of-pocket expenses, which is where supplementary coverage comes in. Some of these policies reimburse deductibles, copayments, and coinsurance, while others provide a cash benefit that the policyholder receives in a lump sum or over a specified span of time.
One common example is Medigap, a supplementary coverage plan for those enrolled in Medicare. The latter does not pays for all health-related services and medical supplies, and Medigap helps fill in the gaps as the name suggests.
CLUE Yourself In: How Your Claims History Informs Your Insurance Future